Internet of Things

Advances in Internet of Things Research
Dr. Florian Michahelles Associate Director Auto-ID Labs ETH Zurich/St.Gallen Department of Management, Technology and Economics, ETH Zrich Beijing Normal University, September 20, 2011
What is the Internet of Things
Challenges
Chances
1234567890
1 23456789012345678901 234567890123456789012 34567890123456
Advances of IoT / Dr. Florian Michahelles Beijing / 20.September 2011
Slide 2 ETH / HSG
Remote communication is an old dream
www.robida.info
Advances of IoT / Dr. Florian Michahelles Beijing / 20.September 2011 Slide 3 ETH / HSG
as well as access to information
light poetry
news
philosophy
novel of the day
melancholic poetry
fun novels
economy
www.robida.info
anywhere
www.robida.info
Who has coined the term Internet of Things?
I'm fairly sure the phrase "Internet of Things" started life as the title of a presentation I made at Procter & Gamble (P&G) in 1999. (Kevin Ashton in RFID Journal, 2009)
Research Results Business Requirements

www.autoidlabs.org
Perspectives on the Internet of Things
The most profound technologies are those that disappear. Marc Weiser
information is moving out of traditional computers into the world around us Neil Gershenfeld
an enabling framework for the interaction between objects yielding a convergence of technologies
things and related information move efficiently and securely through the supply-chain for the benefit of businesses and consumers GS1
a global communications platform that can be used by billions of independent devices is required European Commission
the 50billion devices

The resulting information networks promise to create new business models, improve business processes, and reduce costs and risks McKinsey
(Cisco, Ericsson)
Slide 7 ETH / HSG
Internet of Things
Slide 8 ETH / HSG
First the Internet itself had to be developed
in 1969
in 1972
in 1990 (Web)
[History of Internet and WWW: The Roads and Crossroads of Internet History by Gregory R. Gromov, http://netvalley.com/intval1.html
[How It All Started. Tim Berners-Lee. W3C Tenth Anniversary, Dec 2004, www.w3.org/2004/Talks/w3c10-HowItAllStarted/ ]
Slide 9 ETH / HSG
Information and Real world are separated today
10000 bio
6.5 bio 4 bio
1 bio
The Internet of Things
Slide 11 ETH / HSG
Bridging between physical and digital allow for more efficient processes
When you can measure what you are speaking about, and express it in numbers, you know something about it.
Lord Kelvin Real World + Information = Internet of Things
Desired Output
Control Decision
Final Control Element
Output
Process
Measured Output
Sensor
Slide 12 ETH / HSG
Internet of
Goods
Gadgets Vehicles Homes Cities Environment Energy Industrial Infrastructure Logistics Healthcare People
McKinsey Quarterly 2010 Number 2
Slide 13 ETH / HSG
Objects become Individuals
Communication
Identity
Perception
01.23G3D00.0111A3.000000A05 01.23G3D00.0111A3.000000A05 01.23G3D00.0111A3.000000A05 01.23G3D00.0111A3.000000A05 01.23G3D00.0111A3.000000A05
History
EPCIS Repository EPCIS Capture Interface EPCIS Capturing Application Filtering & Collection (ALE) Interface Filtering & Collection (RFID Middleware) EPCIS Query Interface EPCIS Accessing Application
Embodied entities
Source: nobelprize.org
Reader Protocol
EPCIS Reader Source: CoBIS
Observer
Actuator
Business Rationale: Manage the chaos more efficiently
Apply structure in real world processes

RFID as a tool against Counterfeiting of Products
Less counterfeits sold Increased brand value Improved reputation Decreased risks and liabilities
Old mind-set New mind-set
Prevent counterfeit products from having valid labels
Detect counterfeit products with invalid labels or cloned labels
Respond by prosecuting counterfeiters and confiscating their assets
holograms, inks, taggants, crypto tags etc.
checks, checks, checks! (e.g. RFID, Auto-ID)
law enforcement
Slide 16 ETH / HSG
Visibility of Products in a departement store

O TRANSPONDER, WHERE ART THOU? - A Case Example of RFID Data Analytics in Retail Jasser AlKassab, Frdric Thiesse , Elgar Fleisch , IoT 2010, Tokyo, 2010
Slide 17 ETH / HSG
Mobile applications for sales staff

Slide 18 ETH / HSG
RFID infrastructure at the Essen store

Distribution Center
Freight Elevators
Department Store Front store

Transition Backstore/ Frontstore Label Printer Gates Elevators
Label Printer
Back store
Cluster 1
Transition BS/FS
Cluster 5
Goods Issue Goods Receipt Gates Escalators
Inventory
Storage
Readers Smart Shelves
Readers Fitting Rooms
Cluster 3
Readers Checkouts (POS)
Cluster 2
Advances of IoT / Dr. Florian Michahelles Goods Receipt Smart Fitting Room Beijing / 20.September 2011
Cluster 4
Escalator Exits
Slide 19 ETH / HSG
Smart Shelf
RFID Checkout
RFID raw data filtering and aggregation

Data sources
Filtering and enrichment
Performance metrics
EPCIS data
RFID reader performance
Master data
Trace histories
Front store / back store inventory Lead times Process cycles
Smart shelf inventories
Misplaced merchandise Out-of-shelf situations
POS data
Try-ons
Merchandise performance
Utilization of fitting rooms Catchment area of fitting rooms Complements / substitutes Correlation between sales, try-on frequency and inventory Staff allocation
13 million RFID events collected between January and December 2008

Example analysis of trace histories: Lead times between backroom and frontstore
250 200 Anzahl Tage 150 100 50 0 Shorts, Bermudas Maentel Freizeithose Herrenartikel Calamar T-Shirts Accessoires Timberland Lederwesten Strick Shop Funktionswaesche Polo Sakkos Camel active Gesamtergebnis Hemden Jacken Hosen Guertel Combihose Slips Blousons Boxer Krawatten Schlafanzuege Sweat Anzuege Nachthemden Lederhosen Lederjacken Lederblousons Buggatti, G.Weber Westen Pelzvelours Ledermaentel Hauptgruppen (aggr.)
Zeit Frontstore (MW Tage) Zeit Backstore (MW Tage)
Example analysis of inventory levels: Out-of-shelfs for "never out of shelf" (NOS) items
100% 90% 5 80% 70% 60% 4 50%
4.31% 4.62%
29.54%
Bestand auf der Flche
Bestand auf der Flche
Abt. 221, HG7, NOS HO Black N3455/001 Esprit Collection, Groesse 48 Anzug DL; VK79, EK31 Auszeichnungsnummer: 4047458211592
3
23.38%
3
2 1 0
40% 30% 20% 10% 38.15%
0%
Esprit Anzug Schwarz, 48, DL
0 01.01.2008
01.02.2008
01.03.2008
01.04.2008
01.05.2008
01.06.2008
01.07.2008
01.08.2008
01.09.2008
01.10.2008
01.11.2008
01.12.2008
Slide 22 ETH / HSG
Example analysis of try-ons: Try-ons, catchment areas, and room utilization

Slide 23 ETH / HSG
Example analysis of merchandise performance: Try-on / sales ratio over time

Additional try-ons could not be transformed into sales in the evening hours. The conversion rate is underproportional compared to the afternoon.
250
230 230 214 214
30.00%
Number of Sales Number of Try-Ons
200
25.00%
20.00% 150
126
27.54%
135 135
145 145
146 146
134 134
23.83% 19.40% 15.65%
15.00%
108 108
23.15%
100
69
18.52% 15.87% 19.31% 17.12%
98 98
18.37%
10.00%
51 51
50
12.50%
16 2
19
20
25 25
28 28
25 25
18 18
26 26
36 36 25 25
5.00%
0.00% 10 11 12 12 13 13 14 14 15 15 16 16 17 17 18 18 19 19 Opening hours
09
All sales events of suits on all Mondays in the time period All try-on events of suits on all Mondays of the time period
Slide 24 ETH / HSG
RFID field experiments on the sales floor

Merchandise Density
High Low
Merchandise Presentation
By size By color
Statistical significance: high
Statistically significance: low
Display Dummy
Statistical significance: none

Impacts of RFID
Macro environment Competitive environment Focal firm RFID Investment
Operational impacts Automational

RFID Capability
Goods Issue and Receipt Inventory-taking Checkout Returns management
Information Capability
Informational Effect
Process Capability
Transformational Effect
Management Process Performance
Operational Process Performance
?
Informational Effect
IT Capability
Informational
Automational Effect Substitutional Effect
Smart shelves Smart monitor Smart monitor MDE
Transformational
Shelf replenishment Misplacement prevention
Intermediate Outcomes
(e.g., identification errors, lead times, personnel costs, service level, capital commitment)
Firm Performance
Trading Partner Resources & Business Processes

(e.g., EDI integration, VMI processes, product-related content)
Industry Characteristics
(e.g., supply chain structure, demand patterns, product variants)
Managerial impacts Informational

Process management Category management Store layout design Purchasing / reordering HR planning
Country Characteristics
(e.g., data protection legislation, labour legislation, demographical change, privacy valuation)
Slide 26 ETH / HSG
Challenges
Chances
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Slide 27 ETH / HSG
The main characteristic of IoT: Managing Heterogeneity
Interaction
Localizability Actuation Communication Identification Addressing
Compatibility
Perception
Slide 28 ETH / HSG
What does it mean, to connect a thing? 1. Identification
Unique identification Addressing scheme Reference architecture

EPCglobal Root-level ONS
Operated by Verisign under contract to EPCglobal
EPC sgtin sscc Id.onsepc.com sgln grai giai gid
Company 1
Product A Operated in-house or by third party provider EPCIS
(Manufacturer)
Productspecific Web pages Product-level data Global Data Serial-level data Sync.
Company 2
Product B
Company 3
Product C
Second-tier ONS
EPCIS Discovery Services

Any companies on individual Supply Chain EPCIS EPCIS EPCIS
Serial-level Data (e.g. history of location, temperature)
Slide 29 ETH / HSG
RFID as a tool against Counterfeiting of Products
Financial & economical benefits ($)
Less counterfeits sold Increased brand value Improved reputation Decreased risks and liabilities
Old mind-set New mind-set
Security Process
Prevent counterfeit products from having valid labels
Detect counterfeit products with invalid labels or cloned labels
Respond by prosecuting counterfeiters and confiscating their assets
Real world
Holograms, inks, taggants, crypto tags etc.
Checks, checks, checks! (e.g. RFID, Auto-ID)
Law enforcement
Slide 30 ETH / HSG
What does it mean, to connect a thing? 2. Networking/Communication
Connect to each other
Connect to Internet
Energy efficient
Interoperable Wireless Protocols required (GSM/Wifi/Bluetooth/ 6LoWPan/RoLL) www.ipso-alliance.org
http://www.epcglobalinc. org/standards/architecture
www.webofthings.com
Distinguish between Internet of Things and Internet: Internet of Things will also consider objects not being connected to the Internet.
Slide 31 ETH / HSG
Example: EPC Architecture Framework Cross company framework
Object Naming Service (ONS)
Discovery Service
Producer
EPC Information Services (EPCIS) Filtering & Collection Middleware RFID Reader
Distributor
Retailer
www.fosstrak.org
Slide 32 ETH / HSG
What does it mean, to connect a thing? 3. Sensing/Location
Collect, forward, react to information of the surrounding Location-awareness
Passive RFID Tags Identifying product code
Active Tags Longer range
Sensor Tags Sensing & Control
Wireless Sensor Network Sensing & Control
Internet
Agriculture
Flood Monitoring
Fire Monitoring
Environmental Monitoring
Military
Supply Chain/ Cold Chain Mgmt.
Structural Health Monitoring
Smart Home
[Wired Magazin Feb 2009] Advances of IoT / Dr. Florian Michahelles Beijing / 20.September 2011 Slide 33 ETH / HSG
E.g. Pachube
Slide 34 ETH / HSG
What does it mean, to connect a thing? 4. Data Storage and processing
Collect data Pre-processing on item Interpretate sensor data Store high-level data in Object memory
Application 1 Enterprise Application
Application 2
Application m Internal Database
Object Name Service EPCIS Discovery Service Provides URLs to authoritative Provides secure serial-level pointers Context provision information for a given EPC across the supply chain to trusted partners Relate to EPC data Context Calculation (e.g. biz step, location), Perception across all relevant sensors
EPC Information Service (networked database)
Application Level Events (ALE) (networked database) Low Level Reader Protocol
Collect data Process/store higher-level data
Feature Gen2 calculation Reader Sensor 1 Sensor 1
Feature IP-WSN ZigBee calculation Reader Reader Sensor 2 Sensor 2
Capture event data (tags and sensors)
Feature
Proprietary calculation WSN Reader
Sensor n Sensor n
EPC tag Schmidt, Context IP-WSN [Prof. Albrecht Aware Computing, 2011]
Slide 35 ETH / HSG
What does it mean, to connect a thing? 5. User Interface
Support user's mental models Tangible user interfaces Multi-modal

[Source: Patrick Baudisch, Tutorial Day at MobileHCI 2008, Amsterdam]
Mediators (e.g. mobile phones)
SwissPeaks, ETH Zurich
Collaborative business items (COBIS Project)
Slide 36 ETH / HSG
Challenges
Chances
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Slide 37 ETH / HSG
1. Expectations Management
Offer Benefits!
All RFID is the same Embedded/hidden RFID tags
Education Transparency
RFID is infringing privacy

RFID is invisible
Allow to read data

Deployment of Reader
1. Managing Heterogeneity
Interaction
Localizability Actuation Communication Identification Addressing
Compatibility
Perception
Slide 39 ETH / HSG
2. Serve users: Understand daily activities
What to do with all these things: products use, search, combine, borrow, buy, sell, describe
Breakfast, Chat, news
Start work
Break Meetings
Entertainment, Sports, Dinner
07:30
08:00
08:30
09:00
12:00
15:00
18:30
19:30
22:30
Wake up, get ready
Get to work
Lunch, Socialize
End work, Grocery shopping
Go to bed
Slide 40 ETH / HSG
2. Serve users: e.g. From business intelligence to personal intelligence
Quantified self
2. Serve users: e.g. Develop new personalized services
Retail
www.i-lab.ch
Insurance
Brand
Customer
Insurance
Utility
www.i-lab.ch
www.bitstoenergy.ch
Slide 42 ETH / HSG
3. Incorporate wisdom of the crowd e.g. crowd-sourced translation
Liu, Y., Lehdonvirta, V. Kleppe, M., Alexandrova, T., Kimura, H., & Nakajima, T. (2010) A Crowdsourcing Based Mobile Image Translation and Knowledge Sharing Service. In: Proceedings of the 9th International Conference on Mobile and Ubiquitous Multimedia (MUM 2010), Limassol, Cyprus, December 1-3.
Slide 43 ETH / HSG
3. Incorporate wisdom of the crowd e.g. AppAware.org Users Share and Find Mobile Apps
Slide 44 ETH / HSG
3. Incorporate wisdom of the crowd Enable for DiY Creation in the Internet of Things
Architecting the Internet of Things, Uckelmann, Dieter; Harrison, Mark; Michahelles, Florian; Springer, 2011
3. Incorporate wisdom of the crowd e.g. Embedding Social Networks on the Sales Floor
Social Media: Facebook Product Fan Page
Public Display Field Experiment
5'000 4'000 3'000 2'000 1'000 0
Facebook comments updated daily
Impact on Sales
Digital signage w/social network comments increase sales. Product comments are stronger than brand comments.
Impact on Customers
Text-based messages are harder to read than classical advertising. Digital natives like seeing themselves or friends on screen.
Slide 46 ETH / HSG
4. Establishment of new business models e.g. Pay-as-you-risk
Smoke detector
Water detector
Weather sensor
Slide 47 ETH / HSG
The ultimate promise of the Internet-of-Things: Bring it all together
Financial and non-financial Incentives for information sharing
Content provided by
Companies
Internet of Things
Business Innovation
Benefits
Companies Smart business applications
Company ethics Usage Object and location data New Services enabled by the Internet of Things Front-end Web of Things Architecture
Real-time analytics & business intelligence Supply-chain visibility Public Institutions Public services & offerings
Public Institutions Public services & offerings
People Social Platforms Buying behaviour
Edge devices and management Back-end Internet of Things Core Architecture
People Smart public applications Empowerment of end-users
Architecting the Internet of Things, Uckelmann, Dieter; Harrison, Mark; Michahelles, Florian; Springer 2011 Advances of IoT / Dr. Florian Michahelles Beijing / 20.September 2011 Slide 48 ETH / HSG
Outlook
There won't be one IoT architecture
The IoT will be driven by applications
Standards emerge as an evolution From isolated to networked From proprietary to open standards
The Internet of Things has no governance
Things will be networked for multi-purpose Successful systems will be designed by people around the world Systems should allow for local repair and configuration
The real benefits emerge from mashing applications
Thank you very much!
"The Internet of Things is not synonymous with ubiquitous/pervasive computing, the Internet Protocol (IP), communication technology, embedded devices, its applications, the Internet of People or the Intranet/Extranet of Things, yet it combines aspects and technologies of all of these approaches."
Uckelmann, Dieter; Harrisson, Mark; Michahelles, Florian, eds (2011). "An Architectural Approach Towards the Future Internet of Things". Architecting the Internet of Things. Berlin, Germany: Springer.
Florian Michahelles ETH Zurich http://florian-michahelles.blogspot.com http//www.im.ethz.ch/people/fmichahelles fmichahelles@ethz.ch
+41 (44) 632 7477

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Slide 51 ETH / HSG

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Advances in Internet of Things Research

What is the Internet of Things

1 23456789012345678901 234567890123456789012 34567890123456

Advances of IoT / Dr. Florian Michahelles Beijing / 20.September 2011

Slide 2 ETH / HSG

Remote communication is an old dream

as well as access to information

novel of the day

Who has coined the term Internet of Things?

Research Results Business Requirements

Perspectives on the Internet of Things

the 50billion devices

Slide 7 ETH / HSG

Advances of IoT / Dr. Florian Michahelles Beijing / 20.September 2011

Slide 8 ETH / HSG

First the Internet itself had to be developed

Advances of IoT / Dr. Florian Michahelles Beijing / 20.September 2011

Slide 9 ETH / HSG

Information and Real world are separated today

6.5 bio 4 bio

The Internet of Things

Advances of IoT / Dr. Florian Michahelles Beijing / 20.September 2011

Slide 11 ETH / HSG

Final Control Element

Advances of IoT / Dr. Florian Michahelles Beijing / 20.September 2011

Slide 12 ETH / HSG

McKinsey Quarterly 2010 Number 2

Slide 13 ETH / HSG

Objects become Individuals

01.23G3D00.0111A3.000000A05 01.23G3D00.0111A3.000000A05 01.23G3D00.0111A3.000000A05 01.23G3D00.0111A3.000000A05 01.23G3D00.0111A3.000000A05

Business Rationale: Manage the chaos more efficiently

Apply structure in real world processes

RFID as a tool against Counterfeiting of Products

Old mind-set New mind-set

Prevent counterfeit products from having valid labels

Detect counterfeit products with invalid labels or cloned labels

Respond by prosecuting counterfeiters and confiscating their assets

holograms, inks, taggants, crypto tags etc.

checks, checks, checks! (e.g. RFID, Auto-ID)

Advances of IoT / Dr. Florian Michahelles Beijing / 20.September 2011

Slide 16 ETH / HSG

Visibility of Products in a departement store

Advances of IoT / Dr. Florian Michahelles Beijing / 20.September 2011

Slide 17 ETH / HSG

Mobile applications for sales staff

Advances of IoT / Dr. Florian Michahelles Beijing / 20.September 2011

Slide 18 ETH / HSG

RFID infrastructure at the Essen store

Department Store Front store

Readers Smart Shelves

Readers Fitting Rooms

Readers Checkouts (POS)

Slide 19 ETH / HSG

RFID raw data filtering and aggregation

Filtering and enrichment

RFID reader performance

Front store / back store inventory Lead times Process cycles

Smart shelf inventories

Misplaced merchandise Out-of-shelf situations

13 million RFID events collected between January and December 2008

Zeit Frontstore (MW Tage) Zeit Backstore (MW Tage)

100% 90% 5 80% 70% 60% 4 50%

Bestand auf der Flche